Zappos pays you $2K to quit
Still Need Coffee
507 Posts
I wanted to know what my esteemed forum brethren think about the Zappos practice of offering employees $2000 to quit after 1 week of training. Our CEO wants us to institute this sort of program, and I want some more perspectives on it.
The story from Zappos is that "The Offer" helps weed out those employees who are only there for the money, and don't truly belong in the Zappos culture. They say that only 2-3% actually take them up on the offer (company wide), but the statistic for call center employees taking the offer is actually around 10%.
I want to know what you think about this. Here are some points to ponder for your response -
---One, it's a lot of money.
---Two, it could backfire, and the only people who don't take the offer are those who can't get a job anywhere else, so you're still left with the bad apples.
---Three, would The Offer include some sort of release of claims and liability?
---Four, what if you have an employee who, after some predetermined time, you know you want to get rid of - do you have to offer them the money, or can you just fire them? If you don't offer them the money, could they somehow come back and say they were owed the money?
---Five, would #4 make a difference (legally) if you designated these individuals as "trainees" and not "employees?" The articles I see coming out of Zappos seem to imply these individuals are not "employees" yet.
So many questions!!!
The story from Zappos is that "The Offer" helps weed out those employees who are only there for the money, and don't truly belong in the Zappos culture. They say that only 2-3% actually take them up on the offer (company wide), but the statistic for call center employees taking the offer is actually around 10%.
I want to know what you think about this. Here are some points to ponder for your response -
---One, it's a lot of money.
---Two, it could backfire, and the only people who don't take the offer are those who can't get a job anywhere else, so you're still left with the bad apples.
---Three, would The Offer include some sort of release of claims and liability?
---Four, what if you have an employee who, after some predetermined time, you know you want to get rid of - do you have to offer them the money, or can you just fire them? If you don't offer them the money, could they somehow come back and say they were owed the money?
---Five, would #4 make a difference (legally) if you designated these individuals as "trainees" and not "employees?" The articles I see coming out of Zappos seem to imply these individuals are not "employees" yet.
So many questions!!!
Comments
I think, too, that they're making the offer more than once during the five-week training period (one week company orientation, one week job-specific, two weeks on the phone, one week pick-pack-and-ship - no matter what position you're taking).
Not sure what Zappos is doing about releases and the like. I'd always suggest getting a release, if your state law doesn't get in the way.
And I don't think the employee/trainee distinction would make any difference in limiting any liability you might have.
Brad Forrister
VP Content
I could also see the positive benefit of reinforcing committment. If I turn down $2k, mentally I am reinforcing my committment to be at Zappos. That could reap some positive benefits down the road. (Interestingly, the world famous Seattle Pike Place Fish Market asks new employees to commit after three months of working)
Also, its a nice gesture. Zappos is basically saying "We hired you. Its not working out for you. Here is $2k for your trouble. Good luck. Thanks for not staying on and underperforming."
$2K is just about the right amount too. Enough to work as an incentive but not so much that it probably would draw good people away from a job they are enjoying.
I dont think McDonalds will implement this policy anytime soon but I think it could be a good move for companies that are highly committed to having an engaged, motivated workforce.